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MOEA: minimal CPI impact from rate changes

Reporter TVBS News Staff
Release time:2024/10/01 21:00
Last update time:2024/10/02 08:55
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MOEA: minimal CPI impact from rate changes (TVBS News) MOEA: minimal CPI impact from rate changes
MOEA: minimal CPI impact from rate changes (TVBS News)

TAIPEI (TVBS News) — Economic Minister Kuo Jyh-huei (郭智輝) announced on Tuesday (Oct. 1) that 96% of electricity consumers will not see a rate increase. He estimated the impact on this year's Consumer Price Index (CPI) to be a mere 0.03 percentage points, suggesting a minimal effect on price stability.

The Electricity Rate Review Committee froze rates for residential and essential domestic industries a day earlier. However, the committee approved a 12.5% average increase for industrial users, with new rates effective Oct. 16.

 

In a Legislative Yuan (立法院) session, Kuomintang (KMT, 國民黨) Legislator Yu Hao (游顥) questioned the possibility of avoiding further rate hikes.

Premier Cho Jung-tai (卓榮泰) outlined principles for electricity pricing: reflecting costs, protecting livelihoods, stabilizing prices, promoting energy conservation and reducing carbon emissions, and maintaining financial health.

Minister Kuo emphasized that the committee's decision ensures no rate hikes for residential and small business consumers, and even some declining industries will not face increases.
 

Yu Hao inquired about the rate increase needed for Taiwan Power Company (台電) to break even.

Kuo attributed past losses to rising material costs due to the Russia-Ukraine war rather than the shutdown of nuclear power, stating, "Taiwan Power Company has absorbed most of the costs to prevent significant consumer impacts."

Taiwan Affairs

#electricity rates# Consumer Price Index# CPI# Taiwan Power Company# rate increase# energy conservation# carbon emissions# electricity rate freeze# industrial electricity rates# residential electricity rates

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